The Benefits of Medical Loans
Medical loans can be a better option than depleting emergency reserves or piling up credit card debt. Here are some of the primary advantages of a medical loan:
- Loan conditions include: Most personal loans have repayment terms ranging from 36 to 60 months, allowing you to choose the length that works best for you. And, because interest rates are fixed, you’ll have the same payment every month.
- Quick financing. “It is quite usual for patients to be denied services unless they pay.” According to Michael Sullivan of Take Charge America, “a medical loan may be the only means to afford vital medical care or aesthetic care.” Many personal loans can be disbursed in a couple of days, providing you with the funds you require as soon as possible.
- Credit cards are less expensive. Using a credit card to pay for medical treatment can be costly, with interest rates average approximately 16%. Personal loans with interest rates around 6% or lower are typical if you have decent credit.
- Use as needed. Personal loan revenues can be used for nearly anything you want. “In the case of medical-related charges,” explains Michael Micheletti of Freedom Financial Network, “the uses could include treatments or procedures not covered by insurance, as well as living and travel expenses incurred during treatment and rehabilitation.”
Medical loan disadvantages
Medical loans are not suitable for everyone. Here are some of the most important considerations:
- High interest rates for borrowers with weak credit. While personal loans often offer lower interest rates than credit cards, keep in mind that having negative credit may increase the cost of your medical loan. Personal loan interest rates for bad credit consumers are frequently capped at 36%.
- Funding is scarce. It’s no secret that medical care may be incredibly expensive, and medical loans may not be enough in some circumstances. Your loan amount is mostly determined by your financial situation, but many lenders have lending restrictions of roughly $40,000.
Who are the best candidates for medical loans?
Medical loans may be an excellent option for those with a good credit history and who can qualify for the best interest rates and periods. A loan may also be a viable alternative for someone who needs money for a variety of reasons, such as travel or other fees associated with treatment and recovery.
Furthermore, those who want quick treatment but do not have appropriate insurance or enough funds to cover the medical bills may wish to consider obtaining a loan. “When faced with a potentially life-threatening issue, it is certainly preferable to take out the loan rather than schedule another appointment at a later date,” Sullivan says.